Consolidated Revenues for the quarter ended 30 September 2007 increased by 16.8% to Rs. 7.6 billion over second quarter of FY2007. Operating Profit grew by 16.8% to Rs.1.3 billion, while Net Profit for the quarter grew by 57.9% to Rs. 847.4 million.

During the period under review, the domestic branded formulations sales grew 13.0% to Rs.3.5 billion as compared to market growth of 12.4% (ORG-IMS MAT Sep-07). NPIL grew particularly well in Anti-diabetic, Dermatology, Anti-infective, and OTC segments of the market.

The Company’s Custom Manufacturing (CMG) business also registered a strong performance during the quarter. Global Consolidated Sales of the business grew 22.2% to Rs. 3.4 billion during Q2FY2008. Since 2003, NPIL has been making significant capital investments to create facilities for this business in India. Revenues from these facilities have now begun to gain momentum. Custom Manufacturing Revenues from facilities in India increased over 300% to Rs. 694.0 million during Q2FY2008, compared to Rs. 157.0 million in Q2FY2007. NPIL registered steady revenues from contracts already under execution, and commenced shipment to a significant new customer during the quarter.

The Company’s third important business – Wellspring (Pathlabs), continued to consolidate its market position, increasing Revenues by 76.9% to Rs. 311.7 million during Q2FY2008.

On the Research and Development front, NPIL has recently announced the de-merger of its NCE Research Unit into a separate company with effect from 01 April 2007. Revenue expenditure relating to the period from 1st April 2007 to 30th September 2007 amounting to Rs. 396.7 million (net of tax), as a measure of prudence, has been deducted from the above results pending the receipt of final approval. The NCE program has a pipeline of 13 compounds in Oncology, Inflammation, Anti-diabetes and Anti-infective segments. Four of these compounds are in clinical trials.

During the period under review, NPIL was elected a member of The International Federation of Pharmaceutical Manufacturers and Associations (IFPMA) - a global non-profit NGO representing global big pharmaceutical companies like Pfizer, Merck, Eli Lilly, Roche, Astra Zeneca and Research-based pharmaceutical, biotech, and vaccine companies. NPIL is the first Indian pharmaceutical company to be elected a member of IFPMA.

Commenting on the results, Mr. Ajay Piramal, Chairman said, “We are now beginning to see evidence of the growth momentum that our business model can generate”